Following the UK-India trade deal agreed in July 2025, more alcohol news has emerged from India. 

Set to begin in April 2026, India’s Karnataka state has announced plans to get rid of alcohol price control, in which the Government fixed retail prices of alcoholic beverages. 

The new system will allow greater price freedom in one of India’s largest alcohol markets, likely having a knock-on impact on popular international brands like Pernod Ricard, Anheuser-Busch InBev, Carlsberg and Diageo. 

Impacts are already being seen in terms of rising shares following the policy announcement. 

United Spirits, for example, owned by Diageo, jumped 5.4%. Meanwhile, Heineken’s United Breweries increased by 2.6%. 

The Government of Karnataka has said that the system will be introduced in phases over the next three or four years, allowing the market to adjust. 

On Friday, 6 March, chief minister Siddaramaiah also said that the government will introduce an excise duty system linked to the abv in drinks. 

“Excise duty will be linked to the alcohol content in beverages by introducing an alcohol-in-beverage-based taxation system,” Siddaramaiah said. 

He continued that the number of pricing slabs would also be reduced to eight from the current number of 16. 

“Government-administered price fixation will be deregulated, and the number of price slabs will be rationalised,” he added.